Business

Aus firm bids to produce power

Wed, 25 Jun 2008

Perth-based integrated energy company Aviva Corporation has submitted an expression of interest for the provision of 1 000 megawatts of baseload power production to state-owned power utility Eskom.

The submission follows Eskom's call for expressions of interest for independent power producers to generate up to 2 100 megawatts of baseload electricity.

As per Eskom's requirements, each independent power producer must deliver a minimum of 400 megawatts per project, which should be commissioned between 2012 and 2017.

In a statement last week, Aviva Corporation said that the Eskom expression of interest process was one of several commercial mechanisms under which an independent power producer utilising coal from the Mmamantswe project in Botswana could be established.

According to the company, it is earning a 90% interest in the Mmamantswe project, where it has outlined a 1.3-billion tonne coal resource.

"The project is well positioned, being on the South African border and adjacent to key infrastructure including, highway, railway, and high voltage transmission lines," Aviva states.

The statement said that Aviva had also received expressions of interest from other global independent power producers with regard to participation in the Mmamantswe project.

"The company is now confident the project scale, location and market conditions lends itself to the early entry of a joint development partner and will accelerate partnership discussions accordingly," the statement says.

Aviva says that while it participates fully in the Eskom expression of interest process, it will continue to investigate all other available options, including the requisite activities for an early development decision at Mmamantswe.

SAinfo reporter